Chinese Premier Li Keqiang (R) and German Chancellor Angela Merkel meet the press after their talks in Beijing, capital of China, July 7, 2014. (Xinhua/Wang Ye)

BEIJING, July 7 (Xinhua) -- Chinese Premier Li Keqiang said Monday that China is willing to promote China-Germany ties to new progress in the spirit of mutual respect and mutual benefit.

During a joint press briefing following his talks with visiting German Chancellor Angela Merkel, Li explained the outcome of their official talks.

Li said that China and Germany established a high-level fiscal and financial dialogue mechanism. He said the two sides agreed to strengthen cooperation in the fields of innovation, sustainable development and environmental protection.

Li said China can keep its economic growth within a reasonable margin,and in the second quarter of this year, China's economic conditions had improved from the first quarter. But he warned against the risks of a slowdown, saying the country cannot be complacent on this issue.

Li outlined areas that the Chinese government will focus on to maintain stable economic growth.

China will continue to stimulate the market, especially in financing for small businesses and reducing red tape, he said, adding this will increase the efficiency of supply.

In the coming months, China will continue to strengthen preemptive fine tuning of its economic policy and carry out "targeted controls," according to the premier.

"We have the conditions and capability to keep the Chinese economy running within a reasonable margin and achieve the goal of economic growth for the whole year," Li said.

He noted that since the beginning of this year, world economic recovery has endured a complex situation with both good news and bad news, and that "China's economy is also faced with the pressure of slowing down."

However, he said the Chinese government has refrained from adopting a full-scale stimulus policy, but instead has worked on the basis of maintaining growth within a reasonable margin.

The government has put special effort into pushing forward reform and opening up to the outside world, overhauling the government approval system, improving business registration procedures and relaxing controls on market entrance, he said.

By implementing policies to stabilize growth, promote reform, readjust the economic structure and improve people's livelihood, China has maintained stable growth in the economy, according to Li.

In the first quarter, China's GDP growth stood at 7.4 percent, while employment and inflation indices were in the healthy range.

Merkel said that Germany is willing to make full use of intergovernmental consultations with China to deepen cooperation in the fields of innovation, joint research, market access, new urbanization , energy conservation, climate change and health services.

Germany is willing to collaborate closely with China in international and regional affairs, and to face challenges and realize common development, Merkel said, adding that Germany appreciates China's support of the EU and the euro.

Chinese and German companies signed a number of agreements for deals including buying helicopters from Germany and setting up a new automobile manufacturing base in China.

The two sides agreed to establish a new manufacturing base for FAW-Volkswagen Automotive Co., Ltd. They also decided to build an "ecopark" in Qingdao that will showcase energy-efficient buildings. Air China signed an agreement with its Star Alliance partner, German airline Lufthansa.

Li recalled the Chinese People's War of Resistance Against Japanese Invasion, urging remembrance of history.

"The future can begin and peace can be maintained only if lessons from history are kept in mind," Li said during a joint press briefing with visiting German Chancellor Angela Merkel after their talks.

Monday coincided with the 77th anniversary of the beginning of the war.

Li reviewed the Chinese people's eight-year fight up until the Japanese surrender in 1945, saying "past experience, if not forgotten, is a guide for the future."

Earlier on Monday, Chinese President Xi Jinping delivered a speech at a gathering marking the anniversary.